The Indonesian government has reaffirmed its dedication to fostering a transparent and equitable Indonesian oil and gas investment climate. Indonesia’s Minister of Energy and Mineral Resources Bahlil Lahadalia emphasized that the administration is prioritizing a balanced regulatory framework that serves the interests of state-owned enterprises (SOEs), production sharing contractors (PSCs), and regional stakeholders alike.
During the 2026 Indonesian Petroleum Association Convention and Exhibition (IPA Convex) held in Tangerang on 20th May 2026, Lahadalia articulated the necessity of providing a level playing field for all industry participants.
The core of the government’s current strategy involves the implementation of equal treatment across all regulatory touchpoints. Minister Lahadalia highlighted that the Indonesian oil and gas investment climate must balance the interests of regional governments, state-owned enterprises (SOEs), local entrepreneurs and production sharing contractors (PSCs).
“I will emphasize equal treatment. While state support for SOEs is important, it is far more critical to consider the interests of all parties involved,” Lahadalia stated during the convention.
The Minister further explained that the upstream oil and gas sector remains a fundamental pillar for mitigating potential energy crises. In an era defined by geopolitical and geoeconomic uncertainties, comprehensive collaboration between the public and private sectors is viewed as the primary mechanism for securing energy security.
To facilitate faster project execution, the Minister has issued specific directives to the upstream oil and gas regulator, SKK Migas, to speed up business licensing.
“We must work together to resolve these bottlenecks. I ask SKK Migas to implement reforms and regulations that accelerate our progress,” he said.
A significant portion of the new policy direction involves the empowerment of regional oil and gas entrepreneurs. Minister Lahadalia called for local professionals to be given leadership opportunities within projects located in their respective areas. This approach is intended to ensure that the benefits of resource extraction are felt at the local level, provided that the regional partners maintain high professional standards.
In accordance with directives from President Prabowo Subianto, the Minister also urged production sharing contracts holders to fulfill their obligations regarding mandatory participating interests for regional governments. This move is designed to align national energy goals with regional economic development, ensuring that local communities become active participants in the sector.
Addressing the concerns of investors, the Minister provided assurances regarding natural gas exports. He confirmed that there will be no reductions in export quotas for the current year. All proposed quotas have received approval and will remain valid through the end of the year, providing much-needed certainty for contractors operating within the Indonesian oil and gas investment climate.
The convention also served as a platform for the formalization of eight new production sharing contracts from the 2025 bidding round. These contracts cover the Gagah, Bintuni, Karunia, Drawa, Jalu, Southwest Andaman, Barong, and Nawasena working areas. Furthermore, the government announced the identification of 118 potential new oil and gas blocks. This includes 25 blocks with signed contracts, 43 blocks currently under joint study, and 50 additional areas that are now open for bidding, technical assessment, and new data acquisition.
